The Lisbon Stock Exchange, which was closed after the left-wing coup in 1974 which overthrew Portugal's right-wing dictatorship, was re-opened on Monday (28 February). However, the session was short and no transactions took place.

SYNOPSIS: The Exchange, which is located in Lisbon's impressive Black Horse Square, has been condemned by the country's strong Communist Party. The Party has said that the Exchange's renewed activities could lead the country to economic collapse. After nearly three years of inactivity, dealers, stock-brokers, investors, and speculators, were keen to get back to business.

However, shares for only 21 companies were being quoted, whereas before the fall of the dictatorship, the Exchange had handled the shares of almost two hundred companies. The fall in the number of companies being quoted is mainly because many private companies, including banks, have since been nationalised or heavily subsidised by the State.

The minority Socialist Government of Portugal had given permission for a full resumption of Stock Exchange operations because it believes it will stimulate the capital market, which will in turn help to revive the country's ailing economy. The value of shares on offer were between twenty and eighty per cent lower than in 1974. During the brief session there were only seven offers to sell - and one to buy.